THE FISHER GRADUATE SCHOOL OF INTERNATIONAL BUSINESS

MONTEREY INSTITUTE OF INTERNATIONAL STUDIES

Master of Business Administration Program

Spring Semester 1999

Course: IM 665 Total Quality Management and Business Process

Improvement

Instructor: Dr. Luis Ma. R. Calingo

Credits: Three (3)

Class Schedule: Mondays & Wednesdays, 2:00-3:30 p.m.

Office Location: McCone 306

Office Hours: Mondays & Wednesdays, 12:30-1:30 p.m.

Other days and times by appointment

Contact: (831) 647-4147, Fax (831) 647-6506

E-Maillcalingo@miis.edu

1. Course Description

IF 99.9% IS GOOD ENOUGH, THEN:

 12 babies will be given to the wrong mothers each day.

 107 incorrect medical procedures will be performed by the end of the day today.
 20,000 incorrect drug prescriptions will be written in the next 12 months.
 The IRS will lose 2 million documents this year.
 22,000 checks will be deducted from the wrong bank accounts in the next 60
minutes.
 55 malfunctioning ATMs will be installed in the next 12 months.
 2,200 gallons of coffee assumed to be caffeinated will turn out to be decaffeinated
instead.
 5,517,200 cases of soft drinks produced in the next 12 months will have a taste that
is flatter than a faulty tire.
 114,500 mismatched pairs of shoes will be shipped this year.
 315 entries in Webster’s Third New International Dictionary of the English Language
will turn out to be misspelled.
 2

Total Quality Management (TQM) is a comprehensive and fundamental rule or

belief for leading and operating an organization, aimed at continually improving
performance over the long term by focusing on customers while addressing the
needs of all stakeholders. It is both a philosophy and a set of guiding principles
that represent the foundation of a continuously improving organization. The
bottom line of TQM is results: increased productivity, efficiency, customer satis-
faction/delight, and world-class performance. This course will present the
various TQM frameworks, concepts, and quality improvement tools necessary for
implementing the quality culture that characterizes world-class organizations of
the 21st century. The course will revolve around the core values and the criteria
for performance excellence embodied in the Malcolm Baldrige National Quality
Award, the highest award for performance excellence in U.S. organizations and
which is increasingly being adopted worldwide as the operational definition of a
world-class enterprise. We will, therefore, explore the key actions necessary for
transforming business and not-for-profit organizations into world-class
organizations that deliver ever-improving value to their customers, clients, and
constituents.

2. Course Objectives

By the end of this course, you should be able to:

1. Implement the principles and concepts inherent in a Total Quality

Management (TQM) approach to managing a manufacturing or service
organization.

2. Understand the philosophies--including similarities and differences--of

the gurus of TQM in order to better evaluate TQM implementation
proposals offered by quality management organizations and consultants.

3. Successfully implement process improvement teams trained to use the

various quality tools for identifying appropriate process improvements.

4. Assess exactly where an organization stands on quality management with

respect to the ISO 9000 quality management standard and the Baldrige
Award criteria.

5. Develop a strategy for implementing TQM in an organization.

Accomplishment of Course Objectives

In order to achieve the above objectives, you will engage in a variety of activities:

• Attend lectures.
• Read the text and other instructional materials.
• Keep up-to-date regarding TQM trends and developments in North
America and overseas by reading quality-oriented periodicals published in
print and in the Internet.
• Participate in discussions of case studies of organizations implementing
TQM.
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• In your study group, conduct comprehensive analyses of two (2) case

studies, present the analyses in class, and submit at least one written
report documenting at least one of the case analysis your group
presented.
 In your study group, conduct a Laboratory to Achieve Organizational
Excellence project on a real-life organization by applying the various TQM
tools and techniques, as appropriate, learned in class.
• Write at least two (2) of three (3) full-period examinations.

3. Resources

3.1 Required Textbook

Evans, James R., and William M. Lindsay. The Management and Control of
Quality. 4th ed. Cincinnati, Ohio: South-Western College Publishing, 1999.
[hereafter referred to as "Text."]

3.2 Library References

Camp, Robert C., ed. Global Cases in Benchmarking: Best Practices from
Organizations Around the World. Milwaukee, Wis.: ASQ Quality Press, 1998.
[HD62.15.G558 1998]

Crosby, Philip B. Completeness: Quality for the 21 st Century. New York: Dutton,
1992. [HD62.15.C76 1992]

Deming, W. Edwards. Out of the Crisis. Cambridge, Mass.: Massachusetts

Institute of Technology, Center for Advanced Engineering Study, 1986.
[HD70.U5D45 1986]

Harrington, H. James, and James S. Harrington. Total Improvement Manage-

ment: The Next Generation in Performance Improvement. New York : McGraw-Hill,
1995. [HD62.15.G558 1998]

Juran, Joseph M., and Frank M. Gryna. Juran’s Quality Control Handbook. 4th
ed. New York: McGraw-Hill, 1988. [TS156.J87 1988]

3.4 Other Recommended Books

Aguayo, Rafael. Dr. Deming: The American Who Taught the Japanese About
Quality. New York: Fireside Book, 1990.

Camp, Robert C. Business Process Benchmarking: Finding and Implementing

Best Practices. Milwaukee, Wis.: ASQC Press, 1995.

Crosby, Philip B. Quality is Free: The Art of Making Quality Certain. New York:
McGraw-Hill, 1979.

Harrington, H. James. Business Process Improvement: The Breakthrough Strat-

egy for Total Quality, Productivity, and Competitiveness. New York: McGraw-Hill,
1991.
 4

Ishikawa, Kaoru. What is Total Quality Control?: The Japanese Way. Translated
by David J. Lu. Englewood Cliffs, N.J.: Prentice-Hall, 1985.

Juran, J. M., and Frank M. Gryna. Quality Planning and Analysis. 3rd ed. New
York: McGraw-Hill, 1993.

Mahoney, Francis X., and Carl G. Thor. The TQM Trilogy: Using ISO 9000, the
Deming Prize, and the Baldrige Award to Establish a System for Total Quality
Management. New York: AMACOM, 1994.

Rust, Roland T.; Anthony J. Zahorik; and Timothy L. Keiningham. Return on

Quality: Measuring the Financial Impact of Your Company's Quest for Quality.
Chicago: Probus Publishing Co., 1993.

Tingey, Michael O. Comparing ISO 9000, Malcolm Baldrige, and the SEI CMM for
Software: A Reference and Selection Guide. Upper Saddle River, N.J.: Prentice-
Hall, 1996.

3.5 Selected WWW Resources

3.5.1 Directories

Quality Resources Online [Bill Casti’s “Mother of all Quality pages”]

http://www.quality.org//

Mr. Bill’s Quality Bookmark Page [updated until 16 March 1998]

http://www.iserv.net/~mrbill/tqm/

International Business Resources on the World Wide Web

http://ciber.bus.msu.edu/busres.htm

3.5.2 TQM Principles

Malcolm Baldrige National Quality Award

http://www.quality.nist.gov/

Quality Management Principles Site

http://www.wineasy.se/QMP/
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3.5.3 Benchmarking and Other TQM Tools

International Benchmarking Clearinghouse

http://www.ibc.apqc.org/

Business Process Reengineering & Innovation

http://www.brint.com/BPR.htm

Quality Function Deployment (QFD) Institute

http://www.qfdi.org/

Hoshin Planning
http://www.tqe.com/tqehelp/hoshin.html

3.5.4 Databases

Continuous Quality Improvement (CQI) Server, Clemson University

http://deming.eng.clemson.edu/

Public Sector Continuous Improvement Guide

http://deming.eng.clemson.edu/pub/psci/online.html

Healthcare Quality Assessment Page

http://www.qserve.com/hcass/

3.5.5 Consulting Firms

Philip Crosby Associates II, Inc.

http://www.philipcrosby.com/home.htm

The W. Edwards Deming Institute

http://deming.org/

Juran Institute
http://www.juran.com/

4. Instructional Methodology

The course will be based on the lecture and case methods and, in view of its
small class size, will be a participative seminar in design. Hence, it is expected
that each student will have read the assigned material and/or case and be
prepared to discuss them and answer related questions in class. The assigned
reading load is heavy, as the breadth of the TQM field necessitates. Your
registration in this course is a commitment to do a careful, critical reading of
all required materials prior to each class. Discussions and individual
contributions are encouraged, expected, and shall count toward your final
performance evaluation.

You are requested to keep notes on the strengths and areas for improvement of
the class and communicate these to the instructor via the interim course
evaluations and the official Course Evaluation Form completed on the last day
 6

of class. I am committed to continuous improvement and all comments are

most welcome. You should feel free to write, fax, phone, or e-mail during the
semester regarding any classroom issues which require immediate attention.

5. Performance Evaluation

Upon successful completion of the course, you will receive three (3) semester
hours of graduate credit. Your grade will be based on your performance on the
following:

Class Participation (see Note in 6.1 below) 35%

Examinations (see 6.2) 25%
Laboratory to Achieve Organizational Excellence (see 6.3) 40%

Letter grades shall be based on the following levels of performance:

A: 90-100% Excellent
B: 80-89% Good
C: 70-79% Satisfactory
D: 60-69% Poor
F: 0-59% Fail

Grades will be awarded with plus and minus designations when your numerical
score is in the very top or bottom end of the grade ranges described above. For
example, 80-83% will be a B-, 84-87% will be a B, and 88-89% will be a B+.

6. Notes on Course Requirements

6.1 Class Participation (35%)

6.1.1 Individual Class Participation (20%)

Each course participant shall be expected to participate fully in class

discussions. You will be expected to contribute significantly to in-class analysis
and discussion of readings and case studies. Further, in analyzing each case
study, you are to confine your analysis to solely the information given in the case
material and associated reading assignments; that is, you are not to gather
outside information on the subject company.
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Ways to effectively contribute include:

• Responding to questions.
• Making observations that link and integrate concepts or discussion.
• Asking perceptive questions or one that lead to revealing discussions.
• Presenting alternative positions, ways of looking at problems (e.g., Devil’s
advocate).
• Providing extensions, e.g., novel application of a tool or technique.
• Providing insights, e.g., motivation for the use of a tool or technique.
• Providing illustrations, e.g., examples of “real world” applications.
• Providing feedback on the readings.
• Bringing current relevant material to class, e.g., Business Week, Fortune
or Wall Street Journal articles.
• Recapitulating and summarizing.

Grades for class participation will be allocated as follows:

0 Failing on the above ways of contributing to the classroom experience.

This includes being absent from case discussions.
1 For only occasional positive contributions to the classroom experience.
2 For showing an active interest in class activities and participating in
classroom discussions; for fairly making insightful or helpful comments.
3 Consistently enhancing the quality of class discussion.
4 Going above and beyond the call of duty.

Your grade on class participation is something you should earn via consistent,
daily contribution to class discussion. Preparation of cases and class discussion
provide a key learning component of this course. You should, therefore, make a
conscientious effort to attend class discussions of readings and cases and to be
sufficiently prepared to contribute to the discussions. Merely coming to class is
not sufficient. I will do my best to ensure that each student who is willing to
contribute to discussions is able to do so. If you are unable to prepare for a case
discussion or will be out of town for a class, please let me know in advance.

6.1.2 Group Case Analysis and Oral Presentations (15%)

You will be divided into groups of 3-4 students. Your group will perform a
comprehensive analysis and oral presentation of two (2) case studies. Your group
will also submit a written analysis of at least one of the cases your group will
have presented. The written case analysis is a memorandum that recommends
action to the case study’s decision maker(s). Each oral case presentation will
involve a comprehensive analysis in which the group will be expected to identify,
evaluate and recommend; it is essential that your group present an in-depth
diagnosis and recommend a realistic, workable plan of action. Ideally, the
presentation should demonstrate a systematic analysis of the company’s
situation, appropriately incorporate TQM concepts and tools from the readings
and lecture materials, and propose specific, actionable recommendations.

In planning your oral presentation, your group should assume the role of a team
of management consultants presenting their findings to the company's Chief
Executive Officer (CEO). The rest of the class will assume the role of company
 8

executives and employees. By the end of your presentation, the company's CEO
should: (a) have a clear action agenda, and (b) equally importantly, know
precisely what directives to give during the next management meeting.

The oral presentation itself will take the form of a 30-minute (strictly enforced
time limit) presentation to the class of your group's analysis and
recommendations. The 30-minute limit is a strictly enforced time limit; the grade
assigned to your group presentation will be decreased by one percentage point for
every minute in excess of the time limit. I encourage you to use visual aids (slide
show presentation, overhead-projector transparencies, flip-charts, handouts, or
some combination of these), your imagination, resourcefulness, and originality to
help you in communicating the points you wish to make. A hard copy of
presentation slides (MS PowerPoint, 3/page handout format preferred) should be
handed to me prior to the presentation. Reading from notes will be frowned
upon. Following the presentation will be a question-and-answer period, with
questions being posed by your classmates and your instructor. It is important
that each member of the group contribute equally not only in the preparation for
the presentation, but also in the actual class presentation and the question-and-
answer period.

6.2 Examinations (25%)

There will be three (3) 1½-hour examinations, with each exam including case
study and essay/short answer questions. The examinations will be closed-book,
closed-notes, and non-cumulative in terms of topic coverage. Each exam will
focus on the TQM tools and concepts covered in the readings, cases, and lecture
materials during the prior class meetings. Only the two highest grades on the
three examinations shall be considered in the calculation of the final course
grade.

6.3 Laboratory to Achieve Organizational Excellence (40%)

Your group will assume the role of a Quality Improvement Team of business
consultants hired to demonstrate to the top management of a real-life client-
organization how TQM will add value to the organization’s performance
improvement efforts. The team will draw on ideas and tools of TQM to help the
participating client-organization attain specific performance improvement
objectives and deliver ever-improving quality of produces and services to its
customers/clients/constituents. For purposes of this course, the client
organization shall be the Fisher Graduate School of International Business or
any of its subunits. Further specifications of this group project will be provided
later during the semester.

The report will be due on Day 25. Your paper should not exceed thirty (30)
typewritten double-spaced pages. Exhibits such as tables, illustrations and
appendices are not included in these page limits. No late papers will be
accepted, except under highly unordinary circumstances and only with my prior
consent.

The breakdown of your grade on the group research project shall be as follows:
progress reports (25%), written report (60-65%), and final oral presentation to
 9

the client and the class (10-15%). You will also be required to evaluate the
performance of your group and that of your groupmates using a Peer Evaluation
Form. Both your self- and peer-evaluations will be considered in determining
your final grade for this project.

7. Course Schedule

The following planned semester schedule is tentative and is subject to change as

the course progresses.

DAY LECTURE TOPIC/READINGS CASE STUDY

1 (1/25) Orientation and Course Preview
READ: (1) Text, Chapter 1
2 (1/27) Overview of Quality and Total Quality Quality in Practice: Service Quality
Management at the Ritz-Carlton Hotel Company
[Text, 64-65]. Answer the three (3)
READ: (1) Text, Chapter 2
“Key Issues for Discussion.”

3 (2/1) The TQM Gurus: Crosby, Deming, and Quality in Practice: Ford Becomes a
Juran “Deming Company” [Text, 102-104]
READ: (1) Text, Chapter 3
FFR1: (1) Crosby, Completeness
(2) Deming, Out of the Crisis
(3) Juran & Gryna, Juran’s
Quality Control Handbook
4 (2/3) The Malcolm Baldrige National Quality Quality in Practice: The Payoff from
Award (MBNQA): Overview, “Quest for Baldrige at Texas Instruments [Text,
Excellence” Video, and Criteria for 152-153]
Performance Excellence
READ: Text, Chapter 4

5 (2/8) MBNQA: Criteria for Performance

Excellence (Continued) and “Winning
Through Baldrige” Video
READ: NIST, “MBNQA Criteria for
Performance Excellence”

6 (2/10) Gateway Estate Lawn Equipment

Company [Text, 159-164]

7 (2/15) Modern Steel Technology, Inc. [157-

158]

8 (2/17) Customer and Market Focus Western America Airlines [Text, 213-
214]
READ: (1) Text, Chapter 4
(2) Hunter & Van Landingham,
“Listening to the Customer
Using QFD”

9 (2/22) Gold Star Chili: Customer and

Market Focus [Text, 214-217]

FFR = For Further Reading (recommended, but not required, for those who
1

wish a more in-depth treatment of the subject matter).

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DAY LECTURE TOPIC/READINGS CASE STUDY

10 (2/24) Tools for Process Management
READ: Text, Chapter 9

11 (3/1) (1) Quality in Practice: Quality

Function Deployment at Digital
Equipment Corporation [Text,
446-449]
(2) Quality in Practice: Applications
of Quality Improvement Tools at
Rotor Clip [Text, 449-451]

12 (3/3) EXAM # 1

13 (3/8) Leadership and Strategic Planning Quality in Practice: Strategic Quality

Planning at The Stroh Brewery
READ: (1) Text, Chapter 5 Company [Text, 263-265]
(2) Calingo, “The Evolution of
Strategic Quality
Management”
(3) Alexander & Serfass,
“Beyond Vision”

14 (3/10) Gateway Estate Lawn Equipment

Company—Strategy Development
Process [Text, 269-272]

15 (3/22) TQM/BPI GROUP PROJECTS: PROGRESS REPORT PRESENTATIONS

16 (3/24) Process Management The State University Experience [Text,

389-390]
READ: Text, Chapter 8

17 (3/29) Quality in Practice: Process

Improvement at Boise Cascade [Text,
381-384]

18 (3/31) Human Resource Focus Quality in Practice: Taking Care of

People at FedEx [Text, 323-325]
READ: Text, Chapter 7

19 (4/5) TVS Partnership Properietary,

Limited, Brisbane, Australia [Text,
331-333]

20 (4/7) Measurement and Strategic Information Quality in Practice: Measurement

Management and Data Management at Xerox [Text,
501-503]
READ: Text, Chapter 10

21 (4/12) Ultra-Productivity Fasteners, Parts I

and II [Text. 514-519]

22 (4/14) EXAM # 2

23 (4/19) The ISO 9000 Standard for Quality

Management Systems
READ: Text, Chapter 11 [523-537]
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DAY LECTURE TOPIC/READINGS CASE STUDY

24 (4/21) Building and Sustaining Total Quality Quality in Practice: Xerox 2000—
Organizations Sustaining Leadership Through
Quality [Text, 548-559]
READ: (1) Text, Chapter 11 [537-548]
(2) Lackritz, “TQM Within
Fortune 500 Corporations”
(3) Raiborn & Payne, “TQM:
Just What the Ethicist
Ordered”

25 (4/26) SPECIAL TOPIC (TO BE ASSIGNED)

26 (4/28) INTEGRATIVE LECTURE

GROUP RESEARCH PROJECTS DUE TODAY.

27 (5/3) GROUP RESEARCH PROJECT: ORAL PRESENTATION

28 (5/5) GROUP RESEARCH PROJECT: ORAL PRESENTATION

29 (5/10) GROUP RESEARCH PROJECT: ORAL PRESENTATION

COURSE EVALUATION TO BE CONDUCTED TODAY.

30 (5/12) OPTIONAL FINAL EXAM

8. About the Instructor

Luis Ma. R. Calingo (Ph.D., University of Pittsburgh, 1984) is Professor of

International Management at the Monterey Institute of International Studies.
He was immediate past Dean and Professor of Management at the Sid Craig
School of Business at California State University, Fresno, and previously held
visiting appointments at the University of the Philippines and Universiti
Kebangsaan Malaysia. He is a member of the 1997 Boards of Examiners for
the Malcolm Baldrige National Quality Award and the California Governor's
Golden State Quality Award. He is also American Society for Quality (ASQ)
certified quality auditor and Asian Productivity Organization (Japan) expert on
the establishment of national quality awards in its 18 member-countries in the
Asia Pacific region. He has published and delivered conference presentations
in North America, Europe, and Asia in the areas of strategic management,
quality management, and international business. He has also served as a
consultant in quality management benchmark assessment, strategic planning,
and managing cultural differences to numerous business and not-for-profit
organizations in the United States and East Asia.
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LIST OF ADDITIONAL REQUIRED READINGS

(1) Alexander, William, and Richard Serfass. “Beyond Vision: Creating and
Analyzing Your Organization’s Quality Future.” Quality Progress, July
1998, 31-36.

(2) Calingo, Luis Ma. R. “The Evolution of Strategic Quality Management.”

International Journal of Quality and Reliability Management 13:9 (1996):
19-37.

(3) Hunter, Michael R., and Richard D. Van Landingham. “Listening to the
Customer Using QFD.” Quality Progress, April 1994, 55-59.

(4) Lackritz, James R. “TQM Within Fortune 500 Corporations.” Quality

Progress, February 1997, 69-72.

(5) Raiborn, Cecily, and Dinah Payne. “TQM: Just What the Ethicist Ordered.”
Journal of Business Ethics 15 (1996): 963-972.

(6) U.S. National Institute of Standards and Technology. Baldrige National

Quality Program 1999: Criteria for Performance Excellence. Gaithersburg,
Md., 1998.